Australia’s credit market has seen a pickup in supply of capital instruments, including a clutch of corporate hybrid transactions. The KangaNews Debt Capial Markets Summit 2020 webinar series included a session on additional capital, which focused on supply dynamics, demand drivers and the ever-present tension between retail, wholesale and true institutional participation.
Suncorp-Metway’s return to senior-unsecured issuance revealed the scale of pent-up demand for Australian financial institution (FI) credit even at record tight pricing. After a period of virtually no senior bank issuance, Suncorp expects FI issuance to pick up during 2021 as credit growth and savings drawdowns accelerate.
On 16 February, Suncorp-Metway (A+/A1/A+) launched a new, benchmark, five-year, senior-unsecured domestic deal. The forthcoming transaction will come in either or both fixed- and floating-rate formats and is being marketed at 50 basis points area over swap benchmarks. Pricing is expected on the day of launch. ANZ, Commonwealth Bank of Australia, National Australia Bank, UBS and Westpac Institutional Bank are leading.
On 15 February, Suncorp-Metway (A+/A1/A+) revealed plans for a new five-year, Australian dollar denominated, senior-unsecured transaction, offered in either or both fixed- and floating-rate note formats. ANZ, Commonwealth Bank of Australia, National Australia Bank, UBS and Westpac Institutional Bank have been mandated to arrange a group investor call on the same day.